A broader Dollar correction could have legs today – ING

Market news

24 January 2024

A broader Dollar correction could have legs today – ING

The Dollar strengthened across the board on Tuesday with no clear catalyst. Economists at ING analyze the spurious USD rally.

Dollar rebound to rebound sustainably once short-term Treasury yields take another leap higher

We admit the Dollar jump was quite surprising, and without a clear catalyst, and therefore see room for the USD correction initiated overnight to extend today.

We suspect that in an environment that keeps pricing large Fed cuts, USD rallies aren’t very sustainable.

We’ll be awaiting the next leap higher in short-term USD rates to endorse a Dollar rebound.

GBP/USD surges to near 1.2760 on the upbeat UK PMI data, focus shifts to US PMI

EUR/USD advances to near 1.0890 after the mixed Eurozone, German PMI data

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